China's Shanghai Composite, which declined in the previous two sessions amid worries about monetary tightening and an impending increase in supply of shares, rebounded 1.3% as investors snapped up banking, airline and metals stocks. In afternoon trading, India's Sensex fell 0.2% and Singapore's Straits Times Index gave up 0.6%.

The broad losses across the region came after weaker-than-expected U.S. February consumer confidence data released Tuesday, which eroded expectations for sustainable consumer spending and an economic recovery in the U.S.

"There are a few things that could change the picture before the weekend and I don't think they will be all negative," said Patersons senior private client adviser Chris Blair in Australia. "U.S. consumer confidence obviously surprised people on the downside, but you are seeing good results from the retailers and better-than-expected corporate earnings. I also think Bernanke will be encouraging, rather than downbeat."

Bernanke is set to deliver his semi-annual testimony to Congress later Wednesday. Dow Jones Industrial Average
DJIA, +0.33%
futures gained 10 points in screen trade.

Exporters suffered losses across the region on worries about U.S. consumer sentiment, with Japanese exporters also weighed down by the yen's recent strength. Samsung Electronics
SSNLF, -12.28%
dropped 2% and LG Electronics
LGEAF, +0.00%
skidded 3.5% in Seoul, with Sony Corp. (6758)
SNE, +1.92%
dropping 2.5% and Canon
CAJ, +0.37%
(7751) down 2.8% in Tokyo.

Hyundai Motor
HYMTF, +5.53%
dropped 2.6% in Seoul after the company said Wednesday it would briefly stop selling the new version of its Sonata sedan in the U.S. to fix a faulty door latch, a problem that affects about 4,000 cars in dealerships and 1,300 that have reached customers. The problem comes at a time of increased scrutiny on vehicle flaws, shaped mainly by troubles at Toyota Motor
TM, +1.11%
(7203), the world's largest auto maker.

Resources stocks suffered broad-based falls around the region after the U.S. economic data, which also lifted the U.S. dollar and hurt commodity prices.

Some property stocks advanced in Hong Kong, although Hong Kong financial secretary John Tsang, in his annual budget presented Wednesday, proposed to increase a levy on luxury property transactions in the city to cool speculative activity and prices in that segment.

"There aren't too many surprises in the budget, as some of these measures have been [flagged] in the past. Investors are quite cautious before the Bernanke speech," said Ben Kwong, chief operating officer at KGI Asia. "The measures introduced [in the Budget] will not have an immediate impact on the property market because in the short-term" lower interest rates and higher inflationary pressures would keep the market supported, Kwong added.

Bank of Communications (601328)(3328) rose 2.6% in Hong Kong and 0.5% in Shanghai, in spite of its plans to raise as much as 42 billion yuan ($6.1 billion) from a rights issue in Hong Kong and Shanghai, making it the latest Chinese bank to seek to strengthen its capital base.

"We believe this earlier-than-expected announcement is slightly positive for BoCom since it removes what has been an overhang on the stock over the past few months," Nomura said in a report.

Australian banking and insurance group Suncorp-Metway (SUN)
SNMYY
tumbled 6.4% despite reporting a 41% on-year rise in fiscal first-half net profit, as its interim dividend payment was cut and the company said it must work to improve its insurance margins.

Port and rail operator Asciano Group (AIO)
AANOF, +3.18%
climbed 4.5% after swinging to a first-half net profit from a loss a year earlier and saying it expects full-year earnings to come in around the top of previous guidance.

Among other markets, New Zealand's NZX 50 rose 0.1% and Philippine shares declined 1.1%. In afternoon trading, Indonesian shares gave up 0.6%, while Thailand's SET Index slipped 0.4%.

In foreign exchange markets, traders were focused on Bernanke's testimony. The Fed chief is expected to reaffirm the central bank's policy guidance to keep rates low for an extended period.

"Step by step, the Fed is going to get closer to an exit, which will decrease the dollar's liquidity anyway. That's positive for the dollar in the longer term," said Barclays Capital chief Japan foreign exchange strategist Masafumi Yamamoto.

The U.S. dollar was fetching 90.23 yen against the yen, from 90.18 yen in late New York trade Tuesday and was well off Monday's 91.13 yen in New York. The euro was at $1.3532 from $1.3496, and at 122.10 yen from 121.93 yen.

Lead March Japanese government bond futures were up 0.22 at 139.63 points, tracking the rise in U.S. Treasurys Tuesday. The yield on the benchmark 10-year cash JGB was down one basis point at 1.320%.

Spot gold was at $1,102.40 per troy ounce, down $1.10 from the New York close. "The market continues to be worried about Greece. Gold is following the euro almost tick by tick," said RBS head of precious metals Charles Dowsett.

April Nymex crude oil futures were up 27 cents at $79.13 per barrel on Globex, after dropping $1.45 Tuesday.

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